TMI Blog2017 (11) TMI 1108X X X X Extracts X X X X X X X X Extracts X X X X ..... gs against the respondent is to recover service tax under “erection, commissioning and installation service”. We note that the contracts which were proposed to be made liable for service tax are composite in nature involving supply of goods and certain element of service as claimed by the Revenue. If that be so, the tax liability of such service will arise only with effect from 1.6.2007 - On this ground also the proceedings could not have been concluded under works contract as the proposal is under entirely different service. Appeal dismissed - decided against Revenue. - ST/3970/2012-DB - ST/A/57267/2017-CU[DB] - Dated:- 16-10-2017 - Mr. (Dr.) Satish Chandra, President And Mr. B. Ravichandran, Member (Technical) Shri Sanjay Jain ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntained by the respondent clearly show that they have spent money on such services which necessarily should form part of their consideration received for supply and installation of medical equipments. The payment of VAT on the whole value of contract by the respondent, by itself will not absolve them from service tax liability, if it is established that they did provide taxable services, along with supply of equipments. 3. The ld. Counsel for the respondent submitted that the whole disputed consideration works out to ₹ 133,71,34,556/-. Para 48 of the impugned order categorically observed that respondents paid Vat/sales tax on this total consideration now in dispute. There are two types of contracts. They simply sold the medical equ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r the State Govt. law for full value, no tax liability will arise under the Finance Act, 1994. 6. One more important aspect in the present case is that show cause notice proceedings against the respondent is to recover service tax under erection, commissioning and installation service . We note that the contracts which were proposed to be made liable for service tax are composite in nature involving supply of goods and certain element of service as claimed by the Revenue. If that be so, the tax liability of such service will arise only with effect from 1.6.2007, in terms of law laid down by the Hon ble Supreme Court in Larsen Toubro Ltd. - 2015 (39) STR 913 (SC). On this ground also the proceedings could not have been concluded un ..... X X X X Extracts X X X X X X X X Extracts X X X X
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